Understanding Your Financial Aid AwardsPaying for College

Note: Communicate with each college to find out what is required for a complete application.

To be considered for student aid, a student must complete all forms required by a college.

How to Apply

The Financial Aid Process

These funds may be merit-based, need-based, or non need-based.

There are many types of financial aid.

Types of Financial Aid

gift aid

self-help

aid

Grants

Scholarships

Work-Study

Loans

Financial aid comes from a variety of sources.Sources of Financial Aid

college(institutional aid)

outside/private

sources

federalgovernment

state government

Maximum Award Amounts for 2012-13The Big Three

— State of Illinois Monetary Award Program (MAP)

— Federal Pell Grant

— Federal Supplemental Education Opportunity Grant (FSEOG)Total = $14,270

* Based on funding as of publication date. Announced grant awards could increase or decrease throughout the academic year.

A need-based employment program that provides on- and off-campus jobs to students.

Federal Work-Study

Source

of Loan

Repayment

Options

&

Grace

Period

Interest

Rate

When evaluating loan options, consider the following:

Loan Programs

Start by knowing your rights and responsibilities.

Subsidized

vs.

Unsubsidized

To understand the difference between the two, consider this: When will interest begin to accrue?

Subsidized vs. Unsubsidized

Type Need or No Need

Interest

Subsidized Stafford Loan

A need-based loan

Interest is paid by the federal government while a student is in school at least ½ time, and during authorized periods of deferment

Unsubsidized Stafford Loan

NOT a need-based loan

A student is always responsible for paying interest

Tuition & Fees

Room & Board

Transportation

Books & Supplies

Miscellaneous Living Expenses

Cost of Attendance (COA)

+

What are the costs?

Directexpenses

Estimate ofexpenses

Direct/Indirect expenses

A need analysis formula established by Congress determines a student’s Expected Family Contribution; using information reported on the FAFSA.

Expected Family Contribution

What? Why? Where?A comparative measure of how much a family can be expected to contribute over the course of an academic year

Used to determine a student’s eligibility for most federal and state assistance

Shown on the Student Aid Report (SAR), the output document sent to a student after the FAFSA is processed

EFCExpected Family Contribution

Cost of

Attendance

(COA)

Expected

Family

Contribution

(EFC)

Financial

Need- =

How much aid can a student receive?Financial Need

College

A

Three Examples

COA(Cost of Attendance)

EFC(Expected Family

Contribution)

Financial Need

$3,000$10,000 $7,000

$3,000$20,000 $17,000

-

-

=

=

$3,000$35,000 $32,000- =

College

BCollege

C

The financial aid administrator at the college will package all available aid and send an award letter for consideration.

Goal: To meet a student’s need.

Financial Aid Award Letter

• What is the total cost of attendance?

• What is the Expected Family Contribution?

• What is a student’s financial aid eligibility?

• What types of financial aid are included?

• Was financial need met? • What is the out-of-pocket cost?

When Evaluating the Award Letter…• You must accept each award offered! There are deadlines

for some gift aid (i.e. scholarships and grants).

• Always accept work-study when it is offered. Remember, this is money that must be earned by working so do not count it.

• Before accepting a loan, determine the amount in which

you’d like to borrow. Often times, the full amount offered is

slightly more than what you need to cover your COA.

• A subsidized loan is always better than an unsubsidized

loan.

• A PLUS loan will go into repayment 60 days after your

college makes the last disbursement of the loan.

GOAL: Look for the package with the least amount of loans!

Other Things to Know

• You may be asked to submit documentation to the financial aid office for verification purposes

• Supplemental applications or forms may be required

• Keep track of application DEADLINES!

• Keep a copy of everything you submit

• You must reapply every year

Get your hands on up-to-date, accurate and trusted sources of information to learn what you need to know.

Trusted Web Sites